• GBP$ soft in NorAm afternoon trade, -0.63% at 1.3524; NY range 1.3544-1.3500

• Pair puts in worst daily performance in 2-mos, finds support by daily cloud top at 1.3514

• Combination of dimming Mideast peace prospects, UK political angst sinks bulls

• UK long-end gilts near trend highs as UK fiscal concerns ramp up on political concerns

• UK CPI on May 20 in focus for clues at BoE hawkishness, March CPI y/y was 3.3%

• GBP$ supt 1.3514 daily cloud top, 1.3500 Tues low/psychological lvl, 1.3484 100-DMA

• Res 1.3544 NorAm high, 1.3578 falling 30-HMA, 1.3610 Tuesday high

• A close below the10- & 21-DMAs shifts momentum to bears for test of 100-&200-DMAs 1.3484/25

GBP Chart:


(Paul.Spirgel is a Reuters market analyst. The views expressed are his own)